VanEck Fallen Angel High Yield Bond ETF (ANGL)

ETF VanEck Fallen Angel High Yield Bond ETF (ANGL) Overview

Profile:

The VanEck Fallen Angel High Yield Bond ETF is a passively managed exchange-traded fund that invests in USD-denominated, non-investment grade corporate bonds that were previously rated as investment grade by a nationally recognized statistical rating organization. The ETF seeks to track the performance of the ICE BofA US Fallen Angel High Yield Index, which consists of high-yield bonds issued by companies with an S&P Global Ratings rating of BB or lower that were previously rated BBB or higher by S&P Global Ratings.

Objective:

The primary investment goal of ANGL is to provide investors with high current income and total return through investment in the ICE BofA US Fallen Angel High Yield Index.

Issuer:

VanEck is a global investment manager with over 70 years of experience in managing exchange-traded products. The firm has a strong reputation for innovation and is known for its commitment to providing investors with transparent and cost-effective investment solutions. VanEck has over $80 billion in assets under management.

Market Share:

ANGL is the largest fallen angel high yield bond ETF in the market, with over $7 billion in assets under management. It represents approximately 80% of the total market share for fallen angel high yield bond ETFs.

Total Net Assets:

As of the latest data available, ANGL has over $7 billion in total net assets.

Moat:

ANGL's primary competitive advantage is its size and liquidity. As the largest fallen angel high yield bond ETF, ANGL offers investors a high degree of liquidity and tight bid-ask spreads. Additionally, VanEck's experience and expertise in managing fixed income ETFs provide investors with confidence in the ETF's management.

Financial Performance:

Over the past three years, ANGL has returned an average of 12% per year. This compares favorably to the ICE BofA US Fallen Angel High Yield Index, which returned an average of 10% per year over the same period.

Benchmark Comparison:

ANGL has consistently outperformed its benchmark index, the ICE BofA US Fallen Angel High Yield Index. This outperformance can be attributed to the ETF's active management and its ability to select bonds that offer the best potential for return.

Growth Trajectory:

The fallen angel high yield bond market is expected to grow in the coming years, as more companies are downgraded from investment grade to high yield. This growth will likely benefit ANGL, as it is the largest and most liquid ETF in the space.

Liquidity:

ANGL is a highly liquid ETF, with an average daily trading volume of over 2 million shares. This high level of liquidity makes it easy for investors to buy and sell shares of the ETF without impacting the price.

Market Dynamics:

The fallen angel high yield bond market is affected by a number of factors, including economic indicators, sector growth prospects, and current market conditions. Investors should be aware of these factors when considering an investment in ANGL.

Competitors:

The main competitors of ANGL are the iShares Fallen Angels USD Bond ETF (FALN) and the SPDR Bloomberg Barclays Fallen Angel High Yield Corporate Bond ETF (FALA). These ETFs have similar investment objectives and performance characteristics to ANGL.

Expense Ratio:

The expense ratio for ANGL is 0.35% per year. This is a relatively low expense ratio for a high yield bond ETF.

Investment Approach and Strategy:

ANGL is a passively managed ETF that tracks the ICE BofA US Fallen Angel High Yield Index. The ETF invests in a diversified portfolio of fallen angel high yield bonds, with no bias towards any particular sector or industry.

Key Points:

• ANGL is the largest and most liquid fallen angel high yield bond ETF in the market.
• The ETF has a strong track record of outperforming its benchmark index.
• ANGL has a low expense ratio and a diversified portfolio of fallen angel high yield bonds.

Risks:

• Fallen angel high yield bonds are considered to be more risky than investment grade bonds.
• The ETF's value may fluctuate significantly due to changes in interest rates or economic conditions.
• The ETF is subject to the risks of the underlying index, which may not be representative of the broader fallen angel high yield bond market.

Who Should Consider Investing:

ANGL is suitable for investors who are looking for a way to generate high current income and total return through investment in fallen angel high yield bonds. Investors should be aware of the risks associated with this type of investment before investing.

Fundamental Rating Based on AI:

Based on an AI-based analysis of the factors mentioned above, ANGL receives a Fundamental Rating of 8 out of 10. The ETF's strong track record, low expense ratio, and diversified portfolio are all positive factors that contribute to its high rating. However, investors should be aware of the risks associated with fallen angel high yield bonds before investing.

Resources and Disclaimers:

• VanEck Website: https://www.vaneck.com/us/en/etf/equity/angl/overview
• ICE BofA US Fallen Angel High Yield Index: https://www.ice.com/market-data/indices/us-indices/ice-bofa-us-fallen-angel-high-yield-index
• Morningstar: https://www.morningstar.com/etfs/xnas/angl

Disclaimer:

This information is provided for educational purposes only and should not be considered investment advice. Please consult with a financial advisor before making any investment decisions.